Probate Court

Minor Settlement Procedures and Forms

This rule governs the procedure to be followed for the entry of a consent judgment, a settlement, or a dismissal pursuant to settlement in an action brought for a minor by a next friend, guardian, or conservator or where a minor is to receive a distribution from a wrongful death claim. Before an action is commenced, the Estates and Protected Individuals Code govern the settlement of a claim on behalf of a minor.

A minor cannot act for her/himself: therefore, she/he needs someone to act in a representative capacity to sue or agree to a settlement. MCR 2.420.

Where a lawsuit has not been filed in Circuit Court. (Before an action is commenced, the settlement of a claim on behalf of a minor is governed by the Estates and Protected Individual Code).

A conservator/special conservator has the power to settle a claim by or against the estate without court authorization. MCL 700.5423(2)(u).

A minor 14 years of age or older has a right to nominate her/his own conservator.
MCL 700.5409(1)(b).

A conservator/special conservator may be appointed without a formal hearing if all interested parties have waived notice and consent to the appointment. Since a minor 14 years or older is an interested person, she/he must be served personally. She/he cannot waive notice. Therefore, a hearing must be held.

Settlement of $5,000.00 or Less:

If the insurance company will not accept a release from a parent or guardian, petition for Protective Order. MCL 700.5401.

Structured Settlement:

Any settlement which does not involve the payment of more than $5,000.00 immediately, or the payment of more than $5,000.00 to the minor in any single year during minority.

The following procedure is to be used for the Settlement of $5,000.00 or less or Structured Settlement.

File a Petition for a Protective Order, (Form PC 639) filed by a person interested in the individual's estate, affairs, or welfare, including a parent, guardian, or custodian, or a person who would be adversely affected by lack of effective management of the individual's property or business affairs

File a Petition for Approval of Minor Settlement, (Form KCPC 100) filed by a person interested in the individual's estate, affairs, or welfare, including a parent, guardian, guardian, or custodian, or a person who would be adversely affected by lack of effective management of the individual's property or business affairs.

If attorney fees are contingent, a copy of the written agreement must be filed with the petition, along with a statement setting forth the fees and costs.

Statement of out-of-pocket expenses by a person other than attorney.

Court will set Petitions for hearing and the minor must be present unless, for good cause, the Judge excuses the minor's presence.

Unless waived, notice of the hearing must be given to the following persons MCR 5.125(24)

The individual to be protected if 14 years of age or older

The presumptive heirs of the individual to be protected

If known, a person named as attorney in fact under a durable power of attorney ( not usually applicable)

The nominated conservator

A governmental agency paying benefits to the individual to be protected or before which an application for benefits is pending

May be advisable to notify the insurance company

If petitioner is not represented by an attorney, or if the petition is prepared by the attorney for the insurance company, the court will appoint an attorney for the minor, who has the powers and duties of a guardian ad litem. MCL 700.5406

If part of the settlement is going to be paid to a parent for her/himself, the court may appoint an attorney for the minor to protect the minor's interest who has the powers and duties of a guardian ad litem. MCL 700.5406.

Settlements of More Than $5000.00

The following procedure is to be used for the appointment of a Conservator:

Petition for Appointment of Conservator (Form PC 639) filed by a person interested in the individual's estate, affairs, or welfare, including a parent, guardian, custodian, or a person who would be adversely affected by lack of effective management of the individual's property or business affairs.

File Agreement in Regards to Use of Verification of Deposit Order Approving Minor Settlement (Form KCPC 102), signed by the attorney of record to supervise the placement of funds in a restricted or non-restricted account.

Court will set the Petition for Appointment of Conservator for hearing and the minor must be present unless, for good cause, the Judge excuses the minor's presence.

Unless waived, notice of hearing must be given to the following persons MCR 5.125(24)

The individual to be protected if 14 years of age or older

The presumptive heirs of the individual to be protected

If known, a person named as attorney in fact under a durable power of attorney (not usually applicable)

The nominated conservator

A governmental agency paying benefits to the individual to be protected or before which application for benefits is pending

The following procedure is to be used for the Petition for Approval of Minor Settlement:

File Petition for Approval of Minor Settlement, (Form KCPC 100) filed by a person interested in the individual's estate, affairs, or welfare, including a parent, guardian, or custodian, or a person who would be adversely affected by lack of effective management of the individual's property or business affairs.

If attorney fees are contingent, a copy of the written agreement must be filed with the Petition for Approval of Minor Settlement, along with a statement setting forth the fees and costs.

Statement of out-of-pocket expenses by a person other than attorney.

Court will set Petition for Approval of Minor Settlement for hearing and the minor must be present, unless for good cause, the Judge excuses the minor's presence.

Unless waived, notice of the hearing must be given to the following persons MCR 5.125(24)

The individual to be protected if 14 years of age or older

The presumptive heirs of the individual to be protected

If known, a person named as attorney in fact under a durable power of attorney ( not usually applicable)

The nominated conservator

A governmental agency paying benefits to the individual to be protected or before which an application for benefits is pending

May be advisable to notify the insurance company

If petitioner is not presented by an attorney, or if the petition is prepared by the attorney for the insurance company, the court will appoint an attorney for the minor, who has the powers and duties of a guardian a litem. MCL 700.5406.

If part of the settlement is going to be paid to a parent for her/himself, the court may appoint an attorney for the minor to protect the minor's interest who has the powers and duties of a guardian ad litem. MCL 700.5406.